Finance Formulas / July 6, 2018 / Chanel Cleveland
You can use the bond yield formula to determine the return you’ll realize by holding a bond to maturity. The required yield, conversely, is the return a bond must offer to make it worthwhile to investors, and it’s usually the same yield offered by other plain vanilla bonds in the market with similar credit quality and maturity. Once you’ve decided on the required yield, you can figure out the yield.
Loans can be confusing. Slick lenders quote different numbers that mean different things. They might include certain costs that you're likely to pay, or they might omit those costs in advertisements and brochures.
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